Dubow's absence comes as Gannett and the rest of the newspaper industry suffer a sharp, financial decline because of the global recession and rise of digital media. Gannett and its counterparts are now scrambling to find new business models as the industry undergoes mass layoffs and newspaper shutdowns.
Meanwhile, rumors are circulating about a fresh round of lay-offs and salary cuts at Gannett stemming from a recent post on a well-known blog operated by a former company employee called Gannett Blog. Connell wasn't immediately available to comment on the post.
Shares of Gannett have traded down by about 10% since the company announced Dubow's leave of absence following Monday's closing bell. The drop outpaces the declines of other media stocks and the overall market.
Gannett shares fell Thursday 7.3% to $3.57.
Friday, June 19, 2009
More cuts, layoffs coming at News-Leader?
Rumors of more cuts and layoffs at the Springfield News-Leader's parent company are circulating, while some are also wondering if CEO Craig Dubow will ever return from his medical leave: